Southwest airlines

1.

AIRLINES
Students :Gogoberidze Lika
Filimonova Elga
Group : 5301

2.

Content
Summary
Statement of the
problem
Issues
Options
Recommendations
Plan of actions

SUMMARY
Formed in 1966, Southwest Airlines was one of the
most successful companies in the United States. It has
had a long story, which included changes in its CEO
management, pricing policies it implemented, actions it
took against its competitors and so on. This airway
organization is known to be a low-coster that connects
various destinations both inside and outside Texas.
However, nowadays it is experiencing certain problems
in different fields: growing competition at the low-cost
airlines market, increased costs on fuel and labor,
problems in relations with employees and customers.

4.

PROBLEM STATEMENT
Southwest Airlines should work out a new strategy
that would allow the company solve current issues
and achieve long-term goals.

5.

ISSUES
Economic slump
Raising fuel prices
Growing competition
Competitors offer more frills than Southwest
Increasing labour costs
Loss of loyal customers

6.

OPTIONS
1. Implementing a new strategy
Advantages
- it will bring profit
- long term industry growth
- it will eliminate competitors
- attract new customers and investors
- keep loyal customers
Disadvantages
- strategy may fail
- it will take time & money
- unfavorable economic conditions

7.

OPTIONS
2. To reposition the company as a middle cost
airline
Advantages
-more profit per 1 ticket sold
-An escape from the current competitors
-Some of the existing loyal customers will remain
Disadvantages
-New competitors who may turn out to be much harder to fight
with
-There will be less profit earned per 1 flight as in the very
beginning as it will take time to build a new customer base
-Perhaps it is not worth taking risk and loosing what the company
already has now

Southwest airlines

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.